Mobile manufacturer Lava International Ltd has filed draft papers with the Securities and Exchange Board of India to raise funds through initial public offering (IPO). The company's IPO comprises of fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale (OFS) for up to 4,37,27,603 shares, as per the draft red herring prospectus filed by it. The company's shares will be listed on BSE and NSE. Lava International said it plans to utilise the proceeds from the fresh issue in IPO for marketing and brand building activities, funding acquisition and other strategic initiatives, investment in material subsidiaries for funding their working capital requirements and general corporate purpose.
Also Read: Piramal Enterprises acquires DHFL for Rs 38,000 cr Lava International is an end-to-end focused mobile handset and mobile handset solutions company. It was the third largest feature phone company in India with a market share of 13.4 per cent in terms of sales volume in the financial year 2021. It also has presence in emerging markets such as Thailand, Sri Lanka, Middle East, Bangladesh, Mexico, Indonesia and Nepal. The company designs, manufactures, markets, distributes and services mobile handsets, tablets and other electronics accessories under its brands 'LAVA' and 'XOLO', and provides value added software services. It also offers mobile handsets solutions to original equipment manufacturers ranging from sourcing, design, manufacturing, quality testing, embedding software and distribution. Lava International's total income stood at Rs 5,523.6 crore in the financial year ended March 2021, while its profit was at Rs 172.6 crore. Total income stood at Rs 5,282.4 crore in FY20, while profit during the year was at Rs 107.7 crore. Axis Capital, BOB Capital, DAM Capital and SBI Capital Markets are the book running lead managers for the IPO.
Also Read: HDFC Bank issued 4 lakh credit cards after RBI lifted ban